H1 2020 results July 28, 2020 Market context was challenging over - - PowerPoint PPT Presentation

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H1 2020 results July 28, 2020 Market context was challenging over - - PowerPoint PPT Presentation

Oct 30, 2022 282 likes •463 views

Enel Russia H1 2020 results July 28, 2020 Market context was challenging over Q2 2020 Avg. spot power prices Electricity demand Q2 2020 vs Q2 2019 Q2 2020 vs Q2 2019 H1 2020 vs H1 2020 vs H1 2019 H1 2019 Center Center -2% -18% -13%

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SLIDE 1

Enel Russia H1 2020 results

July 28, 2020

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SLIDE 2
  • Avg. spot power prices¹

Market context was challenging over Q2 2020

  • 2%
  • 6%
  • 8%
  • 6%

Center South Ural 1st Price Zone

Electricity demand

Q2 2020 vs Q2 2019

H1 2020 vs H1 2019

  • 2%
  • 5%
  • 3%
  • 4%
  • 18%
  • 20%
  • 9%
  • 15%

Center South Ural 1st Price Zone

  • 13%
  • 7%
  • 12%
  • 11%

Q2 2020 vs Q2 2019

H1 2020 vs H1 2019

1. Day-ahead market (DAM) prices

2

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SLIDE 3

Key highlights of the period

3

Limited influence of COVID-19 on H1 financial results Active construction phase amid challenging external context

Resilient performance Renewable projects progress

Handover completed Fixed dividend approved for 2019 FY results

Shareholder remuneration Coal power plant disposal

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SLIDE 4

Company’s response to COVID-19 challenge

What next? Our business

Works on Azov and Kola sites never interrupted during COVID-19 period Segregation

  • f
  • peration

and maintenance personnel and contractors Application of a virtual remote assistant for technical inspection and repair activities Extending of remote work mode Further improvement

  • f

digital channels

  • f

communication and data exchange with a focus

  • n cybersecurity

Development of office seating and protection plan together with preventive measures for access to worksites Digital app supporting social distancing and tracing contacts of personnel Maximum attention to health & safety conditions Smart-measuring of temperature on sites and increased disinfection frequency Molecular testing of personnel in all sites as a matter of biweekly screening COVID insurance coverage

4

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SLIDE 5

Azov Wind Farm: construction going ahead

Site works on foundations, roads and T-line - completed Delivery of main wind turbine components - ongoing Installation works - started

5

https://youtu.be/NZqklTHmJdU

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SLIDE 6

Reftinskaya GRES: handover completed ahead of schedule

RGRES on Financial result of the Purchaser RGRES on Financial result of Enel Russia

Completion End of Transition Period 9 months

Conditions precedent satisfaction:

  • ER’s EGSM

approval

  • FAS approval
  • Inventory
  • Title transfer
  • ER operated RGRES under the lease

title; personnel maintained by ER

  • The Purchaser applied for permits &

licenses

2 bn RUB 14.7 bn RUB 4 bn RUB

5 years

Up to 3 bn RUB

  • Annual

payments up to 600mn RUB each if actual net output and/or DAM price exceed the reference values

Signing 20 June 2019 08 August 2019 01 October 2019 01 July 2020 Earn-out (contingent component) + Purchase of several categories

  • f stocks (c.2bn RUB)

RGRES off ER’s balance sheet

6

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SLIDE 7

H1 2020

Financial results

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SLIDE 8

Financial highlights (RUB mn)

1. As of December 2019 2. Last 12 months

8

20,873

  • 40.9%

5,557

  • 36.9%

2,798

  • 34.6%

11,866

+184.5%

EBITDA Net ordinary Income Revenue Net Debt

35,293

H1 2019

8,804 4,279 4,1711

1.0x

Net Debt / EBITDA²

1.1x

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SLIDE 9

Effects of exit from coal generation and drop in electricity demand

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Net power production by technology (TWh) Power sales (TWh)

  • 53%
  • 52%

Equipment availability

82% 84%

Utilization on net electric capacity

45% 36%

6.4 5.8 2.8 2.5 8.4 17.6 8.3 H1 2019 H1 2020 Oil&Gas CCGT Coal 16.1 7.8 4.2 1.9 20.3 9.7 H1 2019 H1 2020 Free market Regulated market

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SLIDE 10

204 79 H1 2019 H1 2020 959 1,147 H1 2019 H1 2020 1,163 1,226 H1 2019 H1 2020

Change in technology mix together with drop in electricity prices jointly affect margins

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Average unitary selling price (RUB/MWh)¹ Average unitary cost of sales (RUB/MWh)² Average unitary margin (RUB/MWh)

1. Including regulated power sales, day ahead market and balancing market sales 2. Including fuel cost and energy purchases

+5% +20%

  • 61%
  • 6% without

RGRES in H1 2019 +2% without RGRES in H1 2019

  • 53% without

RGRES in H1 2019

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SLIDE 11

H1 2019 H1 2020

Heat and other Capacity Electricity

Change in assets perimeter results in lower revenues being compensated by cost economies …

H1 2019 H1 2020

Purchased power Fuel

2.8 1.5 18.1 10.8 H1 2019 H1 2020

Overhead Personnel O&M not manageable O&M manageable

0.4 1.3 1.0

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Operating revenues (RUB bn) Variable costs (RUB bn) Fixed costs (RUB bn)

  • 41%
  • 41%
  • 35%

0.6 1.9 1.4 1.4 2.0 9.7 23.5 1.8 7.2 11.9

20.9 35.3

0.7

20.9 12.3 5.4 3.5

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SLIDE 12

…which leads to expected results on EBITDA dynamics

H1 2019 Gross margin Fixed costs Other items H1 2020 8,804 (5,766) 628 1,890 5,557

12

EBITDA evolution (RUB bn)

  • 37%
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SLIDE 13

Net income performing better than EBITDA on lower net financial charges

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H1 2020 H1 2019 Δ YoY

EBITDA (all - RUB mn) 5,557 8,804

  • 37%

DD&A and impairment (1,698) (10,691)

  • 6 times
  • including Impairment of PPE¹ related

to Reftinskaya reclassification

  • (8,417)
  • Reported EBIT

3,858 (1,887)

  • Ordinary EBIT

3,858 6,137

  • 37%

Net financial charges (336) (755)

  • 56%

Income tax (charge) / benefit (725) 499

  • Reported net income/(loss) (RUB mn)

2,798 (2,142)

  • Net ordinary income

2,798 4,279

  • 35%
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SLIDE 14

Investments and changes in working capital caused increase of Net debt

31Dec19 Cash flow from

  • perations

∆Working capital Income tax Capex Net financial charges and Other 30Jun20

11,866 (5,171) 6,711 (26) 991

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4,171 Net debt evolution (RUB mn)

1. Includes increase/(decrease) in taxes payable, other than income tax. Over 1Q 2020 the Company paid 4.1bn RUB of VAT accrued in 2019 for Reftinskaya sale

+185% 5,190 ¹

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SLIDE 15

11% 66% 23% Corporate loans (RUB) Corporate loans (EUR) Project financing (RUB) Commercial papers (RUB)

Debt profile and liquidity position

1%

15

H1 2020 H1 2019 22bn RUB

Gross debt profile Gross debt by maturity

% utilised

8.4% 83% AVG cost Weight 30/06/19 1.6% 17% RUB EUR 8.5% 100% AVG cost Weight 30/06/20 n/a 0%

As of 30 Jun20 43% 17% 22% 18% As of 30 Jun19 28bn RUB

Total credit facilities: utilized & available (RUB bn)

11% 8% 89% 92%

31 Dec19 30 Jun20

LT Portion ST Portion

132.2 132.2 17% 12%

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SLIDE 16

Contact us

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Ekaterina Dubovitskaya Investor Relations Email ekaterina.dubovitskaya@enel.com Phone +7 495 539 31 31 ext. 7746 Ilya Kalinin Investor Relations Email ilya.kalinin@enel.com Phone +7 495 539 31 31 ext. 7843 Channels Follow us Website Enelrussia.ru Mobile App Enel Investors